Nio Inc. said that it will sell 75 million American Depositary Shares (ADS) of its class A category to raise funds. The news of the offering sent shares down 6.9% on Friday.Nio (NIO) intends to use the proceeds from the offering to increase its ownership stake in Nio China through buying certain minority stakes. The raised funds will also be invested into global development, R&D in autonomous driving technologies, and general corporate purposes, the electric vehicle maker said. In addition, the company will provide underwriters with a 30-day option to buy an additional 11.25 million of its class A ADSsOn Aug. 26, Citigroup analyst Jeff Chung raised NIO's price target to $18.10 (downside potential of 2.2%) from $16 and maintained a Hold rating. Chung said "Nio's battery as a service model and production ramp up provide higher visibility for sales volume growth." (See NIO stock analysis on TipRanks).Currently, the Street has a cautious outlook on the stock. The Hold analyst consensus is based on 3 Holds, 3 Buys, and 2 Sells. The average price target of $13.83 implies a downside potential of about 25.2%. Shares are up 360% year to date.Related News: China Could Provide 40% of Tesla’s Business by 2022, Says Top Analyst Tesla or Nio: Which EV Company is Geared to Race Ahead? General Motors’ Electric Vehicle Spin off a “No Brainer,” Says Analyst More recent articles from Smarter Analyst: * MGM To Cut 18,000 Furloughed US Employees - Report * Transport Canada Completes Simulator Flight Tests Of Boeing’s 737 MAX * Herbalife To Pay $123M To Settle China Bribery Case; Street Says Buy * Amazon Orders 1,800 Electric Vans From Mercedes-Benz As Street Stays Bullish
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